A lifetime trust can apply to any trust you create and will last for the lifetime of the beneficiaries. It can be applied to an irrevocable trust, a revocable living trust or a testamentary trust. We recommend you think about this lifetime trust option when creating a trust, especially if the beneficiaries of the trust are children.
The great thing about a lifetime trust is that the beneficiaries of the trust will benefit from the trust for their entire lifetime. They can receive distributions from the trust for health, education, maintenance and support, which are pretty broad terms. We call this “perfect asset protection” because the beneficiaries never receive an outright distribution of one lump sum during their lifetime. If a beneficiary is ever sued or gets divorced, a creditor or an ex-spouse cannot get to the money in a lifetime trust.